Recommendation for a COUNCIL DECISION addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit
Date: 2011-07-05
Institutions: European Commission
Subjects: European Central Bank, Greece, budget deficit, euro area, gross domestic product, public administration, structural adjustment

EUROPEAN COMMISSION 

Brussels, 5.7.2011 
COM(2011) 433 final 

Recommendation for a 

COUNCIL DECISION 

addressed to Greece with a view to reinforcing and deepening fiscal surveillance and 
giving notice to Greece to take measures for the deficit reduction judged necessary to 
remedy the situation of excessive deficit 

(Recast) 

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(cid:208) 2010/320/EU 

Recommendation for a 

COUNCIL DECISION 

addressed to Greece with a view to reinforcing and deepening fiscal surveillance and 
giving notice to Greece to take measures for the deficit reduction judged necessary to 
remedy the situation of excessive deficit 

(Recast) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  and  in 
particular Article 126(9) and Article 136 thereof, 

Having regard to the recommendation from the Commission, 

Whereas: 

(cid:216) new 

(1) 

Council Decision of 10 May 2010 addressed to Greece with a view to reinforcing and 
deepening  fiscal  surveillance  and  giving  notice  to  Greece  to  take  measures  for  the 
deficit  reduction  judged  necessary  to  remedy  the  situation  of  excessive  deficit 
(2010/320/EU)1  has  been  substantially  amended  several  times2.  Since  further 
amendments are to be made, it should be recast in the interests of clarity. 

(2) 

Article  136(1)(a)  TFEU  foresees  the  possibility  of  adopting  measures  specific  to  the 
Member  States  whose  currency  is  the  euro  with  a  view  to  strengthening  the 
coordination and surveillance of their budgetary discipline. 

(cid:208) 2010/320/EU recital 1 

(cid:208) 2010/320/EU recital 2 

(3) 

Article 126 TFEU establishes that Member States are to avoid excessive government 
deficits  and  sets  out  the  excessive  deficit  procedure  to  that  effect.  The  Stability  and 
Growth Pact, which in its corrective arm implements the excessive deficit procedure, 
provides the framework supporting government policies for a prompt return to sound 
budgetary positions taking account of the economic situation. 

1 
2 

OJ L 145, 11.6.2010, p. 6. 
See Annex I. 

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(4) 

(5) 

(6) 

(cid:208) 2010/320/EU recital 3 

On  27  April  2009,  the  Council  decided,  in  accordance  with  Article  104(6)  of  the 
Treaty establishing the European Community (TEC), that an excessive deficit existed 
in Greece and issued recommendations to correct that deficit by 2010 at the latest, in 
accordance with Article 104(7) (TEC) and Article 3(4) of Council Regulation (EC) No 
1467/97  of  7  July  1997  on  speeding  up  and  clarifying  the  implementation  of  the 
excessive deficit procedure3. The Council also set a deadline of 27 October 2009 for 
Greece  to  take  effective  action.  On  30  November  2009,  the  Council  established,  in 
accordance  with  Article  126(8)  TFEU,  that  Greece  had  not  taken  effective  action; 
consequently, on 16 February 2010, the Council gave notice to Greece in accordance 
with Article 126(9) TFEU to take measures to correct the excessive deficit by 2012 at 
the latest (hereinafter ‘the Council Decision pursuant to Article 126(9)’). The Council 
also set a deadline of 15 May 2010 for effective action to be taken. 

(cid:208) 2010/320/EU recital 4 

According to Article 5(2) of Regulation (EC) No 1467/97, if effective action has been 
taken  in  compliance  with  Article  126(9)  TFEU  and  unexpected  adverse  economic 
events with major unfavourable consequences for government finances occur after the 
adoption  of  that  notice,  the  Council  may  decide,  on  a  recommendation  from  the 
Commission, to adopt a revised notice pursuant to Article 126(9) TFEU. 

(cid:208) 2010/320/EU recital 5 (adapted) 
(cid:214) new 

According  to  the  Commission  services’  autumn  2009  forecasts,  which  provided  the 
basis for the initial notice addressed to Greece, GDP was expected to contract by ¼ % 
in 2010, and recover as from 2011, when the economy was forecast to grow by 0,7 %. 
A sharp fall ⌦ deeper contraction ⌫ in real GDP is now expected for ⌦ took place 
in ⌫ 2010, followed by a further contraction ⌦ and this contraction is expected to 
continue ⌫  in  2011.  A  gradual  resumption  of  growth  is  expected  thereafter.  This 
marked worsening of the economic scenario implies a corresponding deterioration of 
the  outlook  for  public  finances  at  unchanged  policy.  To  this  should  be  added  the 
upward revision of the government deficit outcome for 2009 (from an estimated 12,7 
% of GDP at the time of the Council Decision pursuant to Article 126(9) to 13,6 % of 
GDP  according  to  the  fiscal  notification  submitted  by  Greece  on  1  April  2010)4, 
(cid:214) and later on to 15.4% of GDP  with the risk of a further upward revision (of the 
order of 0,3 to 0,5 % of GDP) following completion of the investigations that Eurostat 
is  undertaking  ⌦ undertook ⌫  with  the  Greek  Statistical  Authorities5.  Lastly, 
concerns in the markets for the public finances outlook have been reflected in a sharp 
rise in risk premia on government debt, compounding the difficulties in controlling the 
path of government deficit and debt. According to the preliminary assessment carried 
out  by  the  Commission  in  March  2010,  Greece  was  implementing,  as  requested,  the 
fiscal measures meant to ensure the achievement of the planned deficit target for 2010. 

3 
4 
5 

OJ L 209, 2.8.1997, p. 6. 
Eurostat news release 55/2010. 22 April 2010. 
Eurostat news release 60/2011. 26 April 2011. 

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However, the abrupt change in the economic scenario means that those plans can no 
longer  be  considered  valid,  requiring  even  more  drastic  action  in  the  course  of  the 
current year. At the same time, the depth of the contraction in the economy that can 
now  be  expected  makes  the  achievement  of  the  initial  deficit  reduction  path 
unfeasible.  Unexpected  adverse  economic  events  with  major  unfavourable 
consequences for government finances can be considered to have occurred in Greece 
and  revised  recommendations  pursuant  to  Article  136  and  Article  126(9)  TFEU  are 
therefore justified. 

In  the  light  of  the  above  considerations,  it  appears  that  the  deadline  which  was  set  in  the 
Council  Decision  pursuant  to  Article  126(9)  for  the  correction  of  the  excessive  deficit  in 
Greece needs to be extended by two years to 2014. 

(cid:208) 2010/320/EU recital 6 (adapted) 

(7) 

(8) 

(cid:208) 2010/320/EU recital 7 (adapted) 
(cid:214) new 

Gross public ⌦ government ⌫ debt at the end of 2009 stood at 115,1 (cid:214) 127.1  % 
of GDP. This is among the highest debt ratios in the EU, and is considerably higher 
than the 60 %-of-GDP reference value of the Treaty. Moreover, the figure risks being 
further  revised  upwards  (by  5  to  7  percentage  points)  as  a  result  of  the  ongoing 
statistical  investigations.  Achieving  the  deficit  reduction  path  that  is  considered 
necessary and feasible in the light of the circumstances would imply that the increase 
in  debt  would  be  reversed  from  2014.  In  addition  to  persistently  high  government 
deficits, the contribution of ‘below-the-line’ (cid:214) financial  operations to the increase 
in debt has been large. This has contributed to undermining market confidence in the 
ability  of  the  Greek  Government  to  service  the  debt  going  forward.  There  is  an 
extremely urgent need for Greece to take decisive action, on an unprecedented scale, 
on  its  deficit  and  on  other  factors  contributing  to  the  increase  in  debt,  in  order  to 
reverse the increase in the debt-to-GDP ratio and allow it to return as soon as possible 
to market financing. 

(cid:208) 2010/320/EU recital 8 (adapted) 

The very severe deterioration of the financial situation of the Greek Government has 
led ⌦ the other ⌫ Eeuro area Member States to decide to provide stability support to 
Greece,  with  a  view  to  safeguarding  the  financial  stability  of  the  eEuro  area  as  a 
whole,  in  conjunction  with  multilateral  assistance  provided  by  the  International 
Monetary Fund. Support provided by the eEuro area Member States will take the form 
of  a  pooling  of  bilateral  loans,  coordinated  by  the  Commission.  The  lenders  have 
decided that their support shall be conditional on Greece respecting this Decision. In 
particular, Greece is expected to carry out the measures specified in this Decision in 
accordance with the calendar set out herein. 

(9) 

In June 2011, it became evident that, taking into account the 2010 budgetary slippage 
and budgetary execution until May, the 2011 target for the deficit would be missed by 

(cid:216) new 

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a significant amount which would jeopardise the overall credibility of the programme. 
Also, in the presence of risks of contagion to other Euro area Member States, there has 
been a need to update specific budgetary measures to allow to stick to the deficit target 
in  2011  and  respect  the  deficit  ceilings  for  the  following  years  established  by  the 
Council  Decision.  These  measures  have  been  extensively  discussed  with  the  Greek 
government  and  commonly  agreed  by  the  European  Commission,  the  European 
Central Bank and the International Monetary Fund. 

(10) 

In the light of the above considerations, it appears appropriate to amend the Decision 
in  a  number  of  respects,  while  keeping  unchanged  the  deadline  for  the  correction  of 
the excessive deficit. 

(cid:208) 2010/320/EU 
(cid:206)1 2011/57/EU Art. 1 pt.1 
(cid:214) new 

HAS ADOPTED THIS DECISION: 

Article 1 

1. Greece shall put an end to the present excessive deficit situation as rapidly as possible and, 
at the latest, by the deadline of 2014. 

2. The adjustment path towards the correction of the excessive deficit shall aim to achieve a 
general  government  deficit  not  exceeding  EUR  18508  million  (8,0  (cid:214) 8.0   %  of  GDP)  in 
2010,  EUR  17065  million  (7,6  (cid:214) 7.6   %  of  GDP)  in  2011,  EUR  14916  million  (6,5 
(cid:214) 6.5  % of GDP) in 2012, EUR 11399 million (4,9 (cid:214) 4.8  % of GDP) in 2013 and EUR 
6385 million (2,6 (cid:214) 2.6  % of GDP) in 2014. To this aim, an improvement in the structural 
balance of at least 10 % of GDP will have to be achieved over the period 2009-2014. 

3.  The  adjustment  path  referred  to  in  paragraph  2  requires  that  the  annual  change  in  the 
general  government  consolidated  gross  debt  does  not  exceed  EUR  34058  million  in  2010, 
EUR  17365  million  in  2011,  EUR  15016  million  in  2012,  EUR  11599  million  in  2013  and 
EUR 7885 million in 2014. (cid:206)1 Based on November 2010 (cid:214) May 2011  GDP projections, 
the corresponding path for the debt-to-GDP ratio shall not exceed 143 (cid:214) 143  % in 2010, 
153 (cid:214) 154   %  in  2011,  157 (cid:214) 158   %  in  2012,  158 (cid:214) 159   %  in  2013  and 
156 (cid:214) 157  % in 2014.  

Article 2 

1. Greece shall adopt the following measures before the end of June 2010: 

(a) 

(b) 

(c) 

a law introducing a progressive tax scale for all sources of income and a horizontally 
unified treatment of income generated by labour and capital assets; 

a law repealing all exemptions and autonomous taxation provisions in the tax system, 
including income from special allowances paid to civil servants; 

the cancellation of the budgetary appropriations in the contingency reserve, with the 
aim of saving EUR 700 million; 

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(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

the  abolition  of  most  of  the  budgetary  appropriation  for  the  solidarity  allowance 
(except a part for poverty relief) with the aim of saving EUR 400 million; 

a reduction of the highest pensions with the aim of saving EUR 500 million for a full 
year (EUR 350 million for 2010); 

a  reduction  of  the  Easter,  summer  and  Christmas  bonuses  and  allowances  paid  to 
civil  servants  with  the  aim  of  saving EUR  1500  million  for  a  full  year  (EUR  1100 
million in 2010); 

the  abolition  of  the  Easter,  summer  and  Christmas  bonuses  paid  to  pensioners, 
though  protecting  those  receiving  low  pensions,  with  the  aim  of  saving  EUR  1900 
million for a full year (EUR 1500 million in 2010); 

an increase in the VAT rate, with a yield of at least EUR 1800 million for a full year 
(EUR 800 million in 2010); 

an increase in excises for fuel, tobacco and alcohol, with a yield of at least EUR 1050 
million for a full year (EUR 450 million in 2010); 

legislation implementing the Services Directive6; 

a law reforming and simplifying public administration at local level with the aim of 
reducing operating costs; 

the establishment of a task force aiming at improving the absorption rate of structural 
and cohesion funds; 

(m) 

a law to simplify the start-up of new businesses; 

(n) 

(o) 

(p) 

(q) 

a reduction of public investment by EUR 500 million compared to plans; 

the channelling of the budgetary appropriations for the co-financing of structural and 
cohesion funds to a special central account that cannot be used for any other purpose; 

the  establishment  of  an  independent  financial  stability  fund  to  deal  with  potential 
capital  shortfalls  and  preserve  the  soundness  of  the  financial  sector,  by  providing 
equity support to banks as needed; 

the reinforced supervision of banks, with increased human resources, more frequent 
reporting and quarterly stress tests. 

2. Greece shall adopt the following measures by the end of September 2010: 

(a) 

fiscal consolidation measures amounting to at least 3,2 % of GDP (4,3 % of GDP if 
carryovers from measures implemented in 2010 are considered) to be included in the 

(cid:208) 2010/486/EU Art. 1 pt.1 

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Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council  of  12  December  2006  on 
services in the internal market (OJ L 376, 27.12.2006, p. 36). 

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draft  budget  for  2011:  a  reduction  in  intermediate  consumption  of  the  general 
government  by  at  least  EUR  300  million  compared  to  the  2010  level  (on  top  of 
savings stemming from the reform of public administration and of local government 
referred to in this paragraph); a freeze in the indexation of pensions (with the aim of 
saving EUR 100 million); a temporary crisis levy on highly profitable firms (yielding 
at least EUR 600 million in additional revenue per year in 2011, 2012 and 2013); a 
presumptive  taxation  of  professionals  (with  a  yield  of  at  least  EUR  400  million  in 
2011 and increasing returns by at least EUR 100 million per year in 2012 and 2013); 
a broadening of the VAT base by including certain services currently exempted and 
by moving 30 % of goods and services from the reduced rate to the main rate (with a 
yield of EUR 1 billion); a phased-in green tax on CO2 emissions (with a yield of at 
least  EUR  300  million  in  2011);  the  implementation  by  the  Government  of  the 
legislation  reforming  the  public  administration  and  a  reorganisation  of  local 
government (with the aim of reducing costs by at least EUR 500 million in 2011, and 
additional  EUR  500  million  in  each  year  2012  and  2013);  a  reduction  in 
domestically-financed investments (by at least EUR 500 million) by giving priority 
to investment projects financed by EU structural funds, incentives to regularise land-
use  violations  (yielding  at  least  EUR  1500  million  from  2011  to  2013,  of  which  at 
least EUR 500 million in 2011); a collection of revenue from the licensing of gaming 
(at  least  EUR  500  million  in  sales  of  licences  and  EUR  200  million  in  annual 
royalties); an expansion of the base of the real estate tax by updating asset values (to 
yield at least EUR 400 million additional revenue); an increased taxation of wages in 
kind,  including  by  taxing  car  lease  payments  (by  at  least  EUR  150  million);  an 
increased  taxation  of  luxury  goods  (by  at  least  EUR  100  million);  a  special  tax  on 
unauthorised  establishments  (to  yield  at  least  EUR  800  million  per  year)  and  a 
replacement  of  only  20  %  of  retiring  employees  in  the  public  sector  (central 
government,  local  governments,  social  security  funds,  public  companies,  state 
agencies  and  other  public  institutions).  Measures  yielding  comparable  budgetary 
savings may be considered after consultation with the Commission; 

(cid:208) 2010/320/EU 

(cb) 

(dc) 

a  reinforcement  of  the  role  and  resources  of  the  general  accounting  office  and  the 
establishment of safeguards against possible political interference in data projection 
and accounting; 

a  draft  reform  of  wage  legislation  in  the  public  sector,  including,  in  particular,  the 
creation of a Single Payment Authority for the payment of wages, the introduction of 
unified principles and a timetable to establish a streamlined and unified public sector 
wage grid to apply to the state sector, local authorities and other agencies; 

(ed) 

legislation to improve the efficiency of the tax administration and controls; 

(fe) 

the  launch  of  independent  reviews  of  central  administration  and  of  existing  social 
programmes; 

(cid:208) 2010/486/EU Art. 1 pt.3 

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(cid:208) 2010/320/EU 

(gf) 

(hg) 

the  publication  of  monthly  statistics  (on  a  cash  basis)  on  revenue,  expenditure, 
financing  and  spending  arrears  for  the  ‘available  general  government’  and  its  sub 
entities; 

an action plan to improve the collection and processing of general government data, 
in particular by enhancing the control mechanisms of statistical authorities and of the 
general accounting office and ensuring effective personal responsibility for cases of 
misreporting,  in  order  to  ensure  the  prompt  supply  of  high  quality  general 
government  data  required  by  Regulations  (EC)  No  2223/967,  (EC)  No  264/20008, 
(EC)  No  1221/20029,  (EC)  No  501/200410,  (EC)  No  1222/200411,  (EC)  No 
1161/200512, (EC) No 223/200913 and (EC) No 479/200914; 

(ih) 

the  regular  publication  of  information  on  the  financial  position  of  public 
undertakings  and  other  public  entities  not  classified  as  part  of  the  general 
government  (including  detailed  income  statements,  balance  sheets  and  data  on 
employment and the wage bill); 

(ji) 

the establishment of a comprehensive central registry for public enterprises; 

(cid:208) 2010/486/EU Art. 1 pt.4 

(kj) 

(lk) 

7 

8 

9 

10 

11 

12 

13 

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an  action  plan  with  a  timetable  for  concrete  actions  leading  to  the  creation  of  a 
central procurement authority; 

an  act  establishing  an  upper  limit  of  EUR  50  million  for  the  annual  public  service 
obligation  contribution  from  the  general  government  to  railway  operators  for  the 
period 2011-2013 and establishing the principle that the State provides no additional 
explicit or implicit support to railway operators; 

Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional 
accounts in the Community (OJ L 310, 30.11.1996, p. 1). 
Commission  Regulation  (EC)  No  264/2000  of  3  February  2000  on  the  implementation  of  Council 
Regulation (EC) No 2223/96 with respect to short-term public finance statistics (OJ L 29, 4.2.2000, p. 
4). 
Regulation  (EC)  No  1221/2002  of  the  European  Parliament  and  of  the  Council  of  10  June  2002  on 
quarterly non-financial accounts for general government (OJ L 179, 9.7.2002, p. 1). 
Regulation  (EC)  No  501/2004  of  the  European  Parliament  and  of  the  Council  of  10  March  2004  on 
quarterly financial accounts for general government (OJ L 81, 19.3.2004, p. 1). 
Council Regulation (EC) No 1222/2004 of 28 June 2004 concerning the compilation and transmission 
of data on the quarterly government debt (OJ L 233, 2.7.2004, p. 1). 
Regulation (EC) No 1161/2005 of the European Parliament and of the Council of 6 July 2005 on the 
compilation of quarterly non-financial accounts by institutional sector (OJ L 191, 22.7.2005, p. 22). 
Regulation  (EC)  No  223/2009  of  the  European  Parliament  and  of  the  Council  of  11  March  2009  on 
European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament 
and  of  the  Council  on  the  transmission  of  data  subject  to  statistical  confidentiality  to  the  Statistical 
Office  of  the  European  Communities,  Council  Regulation  (EC)  No  322/97  on  Community  Statistics, 
and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of 
the European Communities (OJ L 87, 31.3.2009, p. 164). 
Council  Regulation  (EC)  No  479/2009  of  25  May  2009  on  the  application  of  the  Protocol  on  the 
excessive  deficit  procedure  annexed  to  the  Treaty  establishing  the  European  Community  (OJ  L  145, 
10.6.2009, p. 1). 

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(ml) 

a business plan for the Greek railways. The business plan specifies how operational 
activities  will  be  made  profitable,  including  covering  depreciation  costs,  as  from 
2011, including by closing  loss-making lines,  by increasing  tariffs  and  by reducing 
wages  and  staffing;  provides  a  detailed  sensitivity  analysis  on  the  implication  for 
wage costs of various scenarios for the outcome of collective agreement and provides 
information on several options concerning staff; and provides for the restructuring of 
the holding company, including the sale of land and other assets; 

(nm) 

a  law  to  reform  the  wage  bargaining  system  in  the  private  sector,  which  should 
provide  for  a  reduction  in  pay  rates  for  overtime  work,  enhanced  flexibility  in  the 
management  of  working  time  and  allow  local  territorial  pacts  to  set  wage  growth 
below sectoral agreements; 

(cid:208) 2010/486/EU Art. 1 pt.5 

(cid:208) 2010/486/EU Art. 1 pt.6 

(on) 

(po) 

(qp) 

a reform of employment protection legislation to extend the probationary period for 
new  jobs  to  one  year,  and  to  facilitate  greater  use  of  temporary  contracts  and  part-
time work; 

an amendment of the regulation of the arbitration system to allow each of the parties 
to resort to arbitration if they disagree with the proposal of the mediator; 

a  reform  of  the  arbitration  procedure  to  ensure  that  it  operates  according  to 
transparent  objective  criteria,  with  an  independent  committee  of  arbitrators  with 
decision making capacity free from government influence. 

3. Greece shall adopt the following measures by the end of December 2010: 

(cid:208) 2010/320/EU 

(a) 

the final adoption of the measures referred to in paragraph 2(a); 

(cid:208) 2010/486/EU Art. 1 pt.7 

(cid:208) 2011/57/EU Art. 1 pt.2 

(b) 

the implementation of legislation strengthening the fiscal framework. This should, in 
particular, include the establishment of a medium-term fiscal framework, the creation 
of  a  compulsory  contingency  reserve  in  the  budget  corresponding  to  5 %  of  total 
appropriations of government departments, other than wages, pensions and interest, 
the creation of stronger expenditure monitoring mechanisms and the establishment of 
a budget office attached to Parliament; 

(fc) 

a significant increase in the absorption rate of structural and cohesion funds; 

(cid:208) 2010/320/EU 

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(id) 

(je) 

(k) 

(cid:208) 2010/320/EU 

legislation  simplifying  and  accelerating  the  process  of  licensing  undertakings, 
industrial activities and professions; 

a  modification  of  the  institutional  framework  of  the  Hellenic  competition  authority 
(HCC) with a view to increasing its independence, establishing reasonable deadlines 
for the investigation and issue of decisions and entrusting it with the power to reject 
complaints; 

(cid:208) 2011/57/EU Art. 1 pt.4 

a better management of public assets, with the aim of raising at least EUR 7 billion 
during the period 2011-2013, of which at least EUR 1 billion in 2011 and proceeds 
from the sale of assets (real estate and financial assets) shall be used to redeem debt 
and will not reduce the fiscal consolidation efforts to comply with the deficit ceilings 
in Article 1(2); 

(lf) 

measures  aiming  at  removing  existing  restrictions  on  the  freedom  to  provide 
services; 

(cid:208) 2010/320/EU 

(mg) 

a decree disallowing local governments to run deficits at least until 2014; reduction 
in  transfers  to  local  government  in  line  with  planned  savings  and  transfers  of 
competences; 

(cid:208) 2011/57/EU Art. 1 pt.5 

(nh) 

publication of interim long-term projections of pension expenditure up to 2060 as set 
out  in  the  July  2010  legislative  reform  covering  the  main  pension  schemes  (IKA, 
including the pension scheme for civil servants, OGA and OAEE); 

(cid:208) 2010/486/EU Art. 1 pt.10 

(cid:208) 2011/57/EU Art. 1 pt.6 

(oi) 

implementation of a uniform e-prescribing system; publication of the complete price 
list  for  the  medicines  in  the  market;  application  of  the  list  of  non-reimbursed 
medicines and of the list of over-the-counter medicines; publication of the new list of 
reimbursed  medicines  using  the  new  reference  price  system;  the  use  of  the 
information made available through e-prescribing and scanning for the collection of 
rebates  from  pharmaceutical  companies;  introduction  of  a  monitoring  mechanism 
allowing  for  pharmaceutical  expenditure  to  be  assessed  on  a  monthly  basis; 
enforcement of co-payments for regular outpatient services of EUR 5 and extension 
of  co-payments  to  unwarranted  visits  to  emergency  departments;  publication  of 
audited  accounts  for  hospitals  and  health  centres;  and  creation  of  an  independent 
taskforce  of  health  policy  experts  whose  task  is  to  produce,  by  end  May  2011,  a 

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9 

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detailed  report  for  an  overall  reform  of  the  health  system  aimed  at  improving 
efficiency and effectiveness in the health system; 

(qj) 

(rk) 

(sl) 

(tm) 

(un) 

(vo) 

(w) 

(xp) 

(cid:208) 2011/57/EU Art. 1 pt.8 

further  reduction  in  operational  expenditure  by  at  least  5 %  yielding  savings  of  at 
least EUR 100 million; 

further  reduction  in  transfers  yielding  savings  for  the  government  as  a  whole  of  at 
least  EUR  100 million.  The  beneficiary  public  entities  will  ensure  the  concomitant 
reduction in expenditure so that there is no accumulation of arrears; 

means-testing of family allowances from January 2011 on yielding savings of at least 
EUR 150 million (net of the respective administrative costs); 

reduction  in  the  purchase  of  military  equipment  (deliveries)  by  at  least  EUR 
500 million compared to the actual 2010 level; 

reduction in pharmaceutical expenditure by social security funds by EUR 900 million 
owing to an additional reduction in drug prices and new procurement procedures and 
by hospitals (also including expenditure in equipment) by at least EUR 350 million; 

changes in the management, pricing and wages of public enterprises yielding savings 
of at least EUR 800 million; 

equalisation of taxation on heating oil and diesel oil after 15 October 2011, with the 
aim of fighting fraud and yielding at least EUR 400 million in 2011 net of specific 
measures to protect the less prosperous population strata; 

increase in the reduced rates of VAT from 5,5 % to 6,5 % and from 11 % to 13 %, 
yielding  at  least  EUR  880 million  and  reduction  in  the  VAT  rate  applicable  to 
medicines and hotel accommodation from 11 % to 6,5 % with a cost not exceeding 
EUR  250 million,  net  of  savings  for  social  security  funds  and  hospitals  that  result 
from the lower VAT rate on medicines; 

(yq) 

intensification of the fight against smuggling on fuel (at least EUR 190 million); 

(zr) 

increase in court trial fees (at least EUR 100 million); 

(aast) 

implementation of an action plan to accelerate the collection of tax arrears (at least 
EUR 200 million); 

(bbt) 

speeding up tax penalty collection (at least EUR 400 million); 

(ccu) 

collection of revenue that results from the new framework of tax disputes and trials 
(at least EUR 300 million); 

(ddv) 

revenue from the renewal of telecommunication licences that are about to expire (at 
least EUR 350 million); 

(eew) 

revenue from concessions (at least EUR 250 million); 

EN 

10 

   EN 

 
 
(ffx) 

(ggy) 

(hhz) 

a restructuring plan for the Athens transportation network (OASA). The objective of 
the  plan  shall  be  to  reduce  operational  losses  of  the  company  and  make  it 
economically  viable.  The  plan  shall  include  cuts  in  operational  expenditure  of  the 
company and tariff increases. The required actions shall be implemented by March 
2011; 

an act that limits recruitment in the whole general government to a ratio of not more 
than one recruitment for five retirements or dismissals, without sectoral exceptions, 
and  including  staff  transferred  from  public  enterprises  under  restructuring  to 
government entities; 

acts to strengthen labour market institution and establish that: firm-level agreements 
prevail  over  those  under  sector  and  occupational  agreements  without  undue 
restrictions;  firm-level  collective  agreements  are  not  restricted  by  requirements 
regarding  the  minimum  size  of  firms;  the  extension  of  sector  and  occupational 
agreements to parties not represented in negotiations is eliminated; the probationary 
period  for  new  jobs  is  extended;  temporal  limits  in  the  use  of  temporary  working 
agencies  are  eliminated;  impediments  for  greater  use  of  fixed-term  contracts  are 
removed;  the  provision  that  establishes  higher  hourly  remuneration  to  part-time 
workers is eliminated; and a more flexible working-time management including part-
time shift work is allowed for. 

4. Greece shall adopt the following measures by the end of March 2011: 

(cid:208) 2010/320/EU 

(cid:208) 2010/486/EU Art. 1 pt.11 

(ba) 

publication  of  comprehensive  long-term  projections  of  pension  expenditure  up  to 
2060 as set out in the July 2010 legislative reform. The projections shall encompass 
the  supplementary  (auxiliary)  schemes,  based  on  a  comprehensive  set  of  data 
collected  and  elaborated  by  the  National  Actuarial  Authority.  The  projections  shall 
be peer-reviewed and validated by the Economic Policy Committee; 

(cb) 

the government clears payment of arrears accumulated in 2010 and reduces those of 
previous years; 

(cid:208) 2011/257/EU Art. 1 pt. 1 

(cid:208) 2011/257/EU Art. 1 pt. 2 

(d) 

a  medium-term  budgetary  strategy  plan  which 
identifies  permanent  fiscal 
consolidation  measures  of  at  least  8  %  of  GDP  (some  of  which  have  already  been 
identified in May 2010), plus a contingency reserve, that will ensure the achievement 
of deficit targets up to 2014, and that the debt-to-GDP ratio is put on a sustainable 
downward  path.  The  strategy  plan  will  be  published  for  public  consultation  before 
end  March.  The  medium-term  strategy  plan  includes,  in  particular:  prudent 
macroeconomic forecasts; baseline revenue and expenditure projections for the state 
and  for  the  other  government  entities;  a  description  of  permanent  fiscal  measures, 
their timing and their quantification; annual spending ceilings for each ministry and 

EN 

11 

   EN 

 
 
 
 
 
(ec) 

(fd) 

(ge) 

fiscal  targets  for  other  government  entities  through  2014;  post-measures  fiscal 
projections  for  general  government  in  line  with  the  deficit  and  debt  targets;  longer 
term  debt  projections  based  on  prudent  macroeconomic  projections,  stable  primary 
surpluses from 2014 on; and privatisation plans. The medium-term strategy plan will 
be  articulated  with  the  ongoing  healthcare  and  pension  reforms  and  with  specific 
sectoral  plans.  The  sectoral  plans  (draft  plans  to  be  available  by  end  March),  will 
cover  in  particular:  tax  policy  reforms;  state-owned  enterprises;  extra  budgetary 
funds (legal entities of the public sector and earmarked accounts); public wage bill; 
and public administration; social spending; public investment and military spending. 
Each sectoral plan will be managed by interministerial taskforces; 

(cid:208) 2011/257/EU Art. 1 pt. 3 

an  anti-evasion  plan  which  includes  quantitative  performance  indicators  to  hold 
revenue  administration  accountable;  legislation  to  streamline  the  administrative  tax 
dispute and judicial appeal processes and the required acts and procedures to better 
address  misconduct,  corruption  and  poor  performance  of  tax  officials,  including 
prosecution in cases of breach of duty; and publication of monthly reports of the five 
anti-evasion taskforces, including a set of progress indicators; 

(cid:208) 2011/257/EU Art. 1 pt. 4 

a  detailed  action  plan  with  a  timeline  to  complete  and  implement  the  simplified 
remuneration  system;  preparation  of  a  medium-term  human  resource  plan  for  the 
period up  to 2013  in line with the rule  of 1 recruitment for 5 exits, also specifying 
plans to reallocate qualified staff to priority areas; and publication of monthly data on 
staff movements (entries, exits, transfers among entities) of the several government 
departments; 

(cid:208) 2011/257/EU Art. 1 pt. 5 

implementation  of  the  comprehensive  reform  of  the  health  care  system  started  in 
2010 with the objective to keep public health expenditure at or below 6 % of GDP; 
measures yielding savings on pharmaceuticals of at least EUR 2 billion relative to the 
2010 level, of which at least EUR 1 billion in 2011; improvement in the accounting 
and billing systems of hospitals, through: finalising the introduction of double-entry 
accrual accounting systems in all hospitals; the use of the uniform coding system and 
a  common  registry  for  medical  supplies;  the  calculation  of  stocks  and  flows  of 
medical  supplies  in  all  the  hospitals  using  the  uniform  coding  system  for  medical 
supplies;  and  the  timely  invoicing  of  treatment  costs  (no  later  than  2  months)  to 
Greek  social  security  funds,  other  Member  States  and  private  health  insurers;  and 
ensure that at least 50 % of the volume of medicines used by public hospitals by the 
end  of  2011  is  composed  of  generics  and  off-patent  medicines  by  making  it 
compulsory  for  all  public  hospitals  to  procure  pharmaceutical  products  by  active 
substance; 

EN 

12 

   EN 

 
 
 
 
(hf) 

(ig) 

(jh) 

(ki) 

(l) 

(cid:208) 2011/257/EU Art. 1 pt. 6 

with  the  aim  of  fighting  waste  and  mismanagement  in  state-owned  companies  and 
yield  fiscal  savings  of  at  least  EUR  800  million,  an  act  that:  cuts  primary 
remuneration  in  public  enterprises  by  at  least  10  %  at  company  level;  limits 
secondary  remuneration  to  10  %  of  primary  remuneration;  establishes  a  ceiling  of 
EUR  4  000  per  month  for  gross  earnings  (12  payments  per  year);  increases  urban 
transport  tariffs  by  at  least  30  %;  actions  that  reduce  operational  expenditure  in 
public  companies  between  15  %  to  25  %;  and  an  act  for  the  restructuring  of  the 
OASA; 

(cid:208) 2011/57/EU Art. 1 pt.10 

a new regulatory framework to facilitate the conclusion of concession agreements for 
regional airports; 

establishment  of  an  independent  taskforce  of  education  policy  aiming  at  increasing 
the  efficiency  of  the  public  education  system  (primary,  secondary  and  higher 
education) and reach a more efficient use of resources; 

(cid:208) 2011/257/EU Art. 1 pt. 7 

adoption of a law to establish the Single Public Procurement Authority in line with 
the Action Plan; and development of an e-procurement IT platform and setting up of 
intermediate  milestones  in  line  with  the  Action  Plan,  including:  testing  a  pilot 
version,  availability  of  all  functionalities  for  all  contracts  and  phasing-in  of  the 
mandatory use of e-procurement system for supplies, services and works contracts; 

(cid:208) 2011/257/EU Art. 1 pt. 8 

an  act  specifying  the  qualification  and  responsibilities  of  accounting  officers  to  be 
appointed in all line ministries and major government entities with the responsibility 
to ensure sound financial controls; appointment of financial accounting officers; and 
acceleration  of  the  process  of  establishing  commitment  registries  and  operational 
registries covering the whole general government (except the smallest entities). 

(cid:208) 2010/320/EU 
(cid:214) new 

5. Greece shall adopt the following measures by the end of June (cid:214) July  2011: 

(a) 

a streamlined and unified public sector wage grid to apply to the state sector, local 
authorities and other agencies, with remunerations reflecting productivity and tasks; 

(b) 

assessment  of  the  results  of  the  first  phase  of  the  independent  functional  review  of 
central  administration,  including  the  operational  policy  recommendations  and 
completion of the review of existing social programmes; 

(cid:208) 2011/57/EU Art. 1 pt.11 

EN 

13 

   EN 

 
 
 
 
 
 
 
(cid:216) new 

(b) 

(c) 

a  medium-term  staffing  plan  for  the  period  up  to  2015  in  line  with  the  rule  of  1 
recruitment  for  5  exits  (1  for  10  in  2011).  The  plan  shall  include  tighter  rules  for 
temporary staff, cancellation of vacant job post and reallocation of qualified staff to 
priority  areas  and  takes  into  account  the  extension  of  working  hours  in  the  public 
sector;  

a  detailed  action  plan  with  a  timeline  to  complete  and  implement  the  simplified 
remuneration system, in line with private sector wages, achieving a reduction in the 
total wage bill. This plan shall be based on the results of the report published by the 
Ministry  of  Finance  and  the  Single  Payment  Authority.  The  legislation  for  a 
simplified  remuneration  system  shall  be  phased  in  over  3  years.  Wages  of  state-
owned enterprises employees shall be in line with the new wage grid for the public 
sector. 

(ce) 

a  reinforcement  of  the  labour  inspectorate,  which  shall  be  fully  resourced  with 
qualified staff and have quantitative targets on the number of controls to be carried 
out; 

(cid:208) 2010/320/EU 

(cid:208) 2010/486/EU Art. 1 pt.13 
(adapted) 
(cid:214) new 
(cid:206)1 2011/57/EU Art. 1 pt.12 

(df) 

(e) 

(fg) 

an  act  revising  the  main  parameters  of  the  pension  system  in  order  to  limit  the 
increase in public sector spending on pensions over the period (cid:206)1 2009-2060  to 
less than 2,5 % of GDP, if the long-term projections provided by paragraph 3(n) and 
paragraph 4(b) show that the projected increase in public pension expenditure would 
exceed  this  amount  (cid:214) .  The  National  Actuarial  Authority  (NAA)  shall  continue  the 
submission  of  long-term  projections  of  pension  expenditure  up  to  2060  under  the  adopted 
reform.  The  projections  shall  encompass  the  main  supplementary  (auxiliary)  schemes 
(ETEAM,  TEADY,  MTPY),  based  on  comprehensive  data  collected  and  elaborated  by  the 
NAA  ; 

(cid:208) 2010/486/EU Art. 1 pt.13 
(cid:214) new 

a revision of the functioning of supplementary/auxiliary public pension schemes with 
the  aim  of  stabilising  expenditure  and  guarantee  the  budgetary  neutrality  of  those 
schemes; 

a revision of the list of heavy and arduous professions to reduce its coverage to no 
more  than  10  %  of  the  labour  force;  the  new  list  of  difficult  and  hazardous 
occupations shall apply with effect from 1 July (cid:214) August  2011 to all current and 
future employees; 

EN 

14 

   EN 

 
 
 
 
 
(h) 

legislation  to  establish  the  Single  Public  Procurement  Authority  (SPPA)  with  the 
mandate, objectives, competences, powers and schedule for entry into force, in line 
with the Action Plan; 

(cid:216) new 

(g) 

implementation  of  the  reform  of  the  public  procurement  system,  as  defined  in  the 
action plan; 

(cid:208) 2010/486/EU Art. 1 pt.13 

(cid:208) 2011/57/EU Art. 1 pt.13 
(adapted) 
(cid:214) new 

(hi) 

further  promotion  of  ⌦ additional  measures  to  promote ⌫  the  use  of  generic 
medicines  through:  compulsory  e-prescription  by  active  substance.  (cid:214) and  of  less 
expensive  generics  when  available;  associating  a  lower  cost-sharing  rate  to  generic 
medicines  that  have  a  significantly  lower  price  than  the  reference  price  (lower  than  60 
percent  of  the  reference  price)  on  the  basis  of  the  experience  of  other  EU  Member  States; 
setting  the  maximum  price  of  generics  to  60  percent  of  the  branded  medicine  with  similar 
active substance;  

(cid:208) 2011/257/EU Art. 1 pt. 9 
(adapted) 
(cid:214) new 

(ij) 

(k) 

(l) 

publication of an inventory of state-owned assets, including stakes in listed and non-
listed enterprises and commercially viable real estate and land and an estimation of 
the values of these assets; and establishment of a General Secretariat of Real Estate 
⌦ Development shall be established ⌫ (cid:214) with the aim of improving management of real 
estate assets, clear them of encumbrances and prepare them for privatisation;  in order to 
improve  coordination  and  accelerate  the  privatisation  and  asset  management 
programme.  On  the  basis  of  this  inventory,  privatisation  plans  will  be  revised  and 
accelerated. 

(cid:216) new 

the  medium-term  fiscal  strategy  (hereinafter  MTFS)  through  2015  as  described  in 
annex I of this decision and respective implementing bills. The MTFS shall elaborate 
on the permanent fiscal consolidation measures which ensure that the deficit ceiling 
for  2011-15  as  established  by  the  Council  Decision  are  not  exceeded,  and  that  the 
debt-to-GDP ratio is put on a sustainable downward path; 

privatisation  of  assets  worth  at  least  EUR  390  million;  adoption  of  a  privatisation 
programme with the aim of collecting at least EUR 15 billion by end-2012 EUR 22 
billion by end-2013, EUR 35 billion by end-2014 and at least EUR 50 billion by end-
2015; proceeds from the sale of assets (real estate, concessions and financial assets) 

EN 

15 

   EN 

 
 
 
 
 
 
(m) 

(n) 

(o) 

(p) 

(q) 

(r) 

shall  be  used  to  redeem  debt  and  will  not  reduce  the  fiscal  consolidation  efforts  to 
comply with the deficit ceilings in Article 1(2); 

establishment  of  a  privatisation  fund  with  sound  governance  to  accelerate  the 
privatisation process and guarantee its irreversibility and professional management; 

legislation to close, merge and downsize non-viable entities; 

measures  to  strengthen  expenditure  control:  a  decision  specifying  the  qualification 
and responsibilities of accounting officers to be appointed in all line ministries with 
the responsibility to ensure sound financial controls;. 

new criteria and terms for the conclusions of contracts by social security funds with 
all healthcare providers, with the aim of achieving the targeted reduction in spending; 
initiates  joint  purchase  of  medical  services  and  goods  to  achieve  substantial 
expenditure reduction of at least 25 percent compared to 2010 through price-volume 
agreements; 

publication  of  binding  prescription  guidelines  for  physicians  on  the  basis  of 
international  prescription  guidelines  to  ensure  a  cost-effective  use  of  medicines; 
publication and continuous update of the positive list of reimbursed medicines; 

preparation  of  a  plan  for  the  reorganisation  and  restructuring  [of  hospitals]  for  the 
short  and  medium  term  with  a  view  to  reducing  existing  inefficiencies,  utilising 
economies of scale and scope, and improving quality of care for patients. The aim is 
to reduce hospital costs by at least 10 percent in 2011 and by an additional 5 percent 
in 2012 in addition to the previous year. 

6. Greece shall adopt the following measures by the end of September 2011: 

(cid:208) 2010/320/EU 

(a) 

(cid:208) 2011/57/EU Art. 1 pt.14 

the inclusion in the draft budget for 2012 of fiscal consolidation measures amounting 
to  at  least  2,2 %  of  GDP.  The  budget  shall,  in  particular,  include  the  following 
measures (or in exceptional circumstances, measures yielding comparable savings): 
further  broaden  the  VAT  base  by  moving  goods  and  services  from  a  reduced  to  a 
normal  rate  (with  the  aim  of  collecting  at  least  an  additional  EUR  300 million); 
reduce  public  employment  in  addition  to  the  rule  of  one  recruitment  for  every  five 
retirements  in  the  public  sector  (with  the  aim  of  saving  at  least  EUR  600 million); 
establish  excise  duties  for  non-alcoholic  beverages  (for  a  total  amount  of  at  least 
EUR  300 million);  expand  the  real  estate  tax  by  updating  asset  values  (in  order  to 
create  at 
in  extra  revenue);  reorganise  sub-central 
governments (aiming at generating at least EUR 500 million in savings); introduce a 
nominal  freeze  on  pensions;  increase  efficiency  of  the  presumptive  taxation  of 
professionals (with the aim of collecting at least EUR 100 million); reduce transfers 
to  public  undertakings  (by  at  least  EUR  800 million)  following  their  restructuring; 
the  aim  of  saving  EUR 
make  unemployment  benefits  means-tested  (with 
500 million); and collect further revenues from the licensing of gaming (at least EUR 
225 million in the sale of licences and EUR 400 million in royalties); 

least  EUR  200 million 

EN 

16 

   EN 

 
 
 
(a) 

a budget for 2012 in line with the MTFS and the objective of respecting the deficit 
celings established in Article 1(2);  

(cid:216) new 

(b) 

(c) 

(d) 

(e) 

(f) 

(f) 

(g) 

(h) 

(i.) 

(j) 

(cid:208) 2010/320/EU 

a mitigation of tax obstacles to mergers and acquisitions; 

a simplification of the custom clearing process for exports and imports; 

a further increase in the absorption rates of structural and cohesion funds; 

the  full  implementation  of  the  Better  Regulation  agenda  with  a  view  to  reducing 
administrative burdens by 20 % (compared with 2008); 

(cid:208) 2011/257/EU Art. 1 pt. 10 

building  on  the  inventory  of  commercial  state-owned  real-estate  assets  (to  be 
published  by  June  2011);  elaboration  of  a  medium-term  plan  to  divest  state  assets; 
revision of the privatisation receipts planned for 2011-13; and extension of the plan 
through 2015. 

legislation to close, merge and downsize large non-viable entities; 

(cid:216) new 

measures  enabling  a  reduction  in  procurement  and  third  party  costs  in  state-owned 
enterprises, updating tariffs, and creating new business lines, and reduce personnel costs by 
completing and implementing an employment retrenchment plan. Excess staff that cannot be 
removed by the hiring rule of 1 recruitment for 5 exits (1 for 10 in 2011) shall be dealt with 
through  non-voluntary  redundancies  and  furlough  (labour  reserve).  This  rule  is  without 
sectoral  exceptions;  it  shall  also  apply  to  staff  transferred  from  public  enterprises  to  other 
government entities after screening of professional qualifications by ASEP under its regular 
evaluation criteria. Staff in the labour reserve shall be paid at 60 percent of their basic wage 
for not more than 12 months, after which they shall be dismissed.  

a  legal  framework  enabling  fast  assignment  of  land  use  and  accelerates  state  land 
ownership registration.  

an  act  enabling  the  promotion  of  investment  in  the  tourism  sector  (tourist  resorts  and 
secondary  tourist  housing),  with  a  view  to,  together  with  the  bill  on  land  use,  allow  for 
accelerating the privatisation process of land plots managed by the Greek Tourist Real Estate 
Agency (ETA). 

finalisation of the functional review of existing social programmes; assessment by the 
government of the results of the second and final phase of the independent functional review 
of  central  administration; 
the  operational 
recommendations  of  the  first  phase  of  the  functional  review  of  public  administration  at 
central level and of the full review of existing social programmes; 

legislation  and  measures 

implement 

to 

EN 

17 

   EN 

 
 
 
 
 
(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

an  in-depth  revision  of  the  functioning  of  secondary/supplementary  public  pension 
funds, including welfare funds and lump-sum schemes. The aim of the revision is to 
stabilise  pension  expenditure,  guarantee  the  budgetary  neutrality  of  these  schemes, 
and  ensure  medium-  and  long-term  sustainability  of  the  system.  The  revision  shall 
achieve: a further reduction in the number of existing funds; the elimination of imbalances 
in  those  funds  with  deficits;  the  stabilisation  of  the  current  spending  at  sustainable  level, 
through  appropriate  adjustments  to  be  made  from  1  January  2012;  the  long-term 
sustainability of secondary schemes through a strict link between contributions and benefits.  

identification  of  the  schemes  for  which  lump  sums  paid  on  retirement  are  out  of  line  with 
contributions paid with the aim of adjusting payment by the end of December 2011. 

Further  measures  to  extend  in  a  cost-effective  way  the  e-prescribing  of  medicines, 
diagnostics and doctors' referrals to all social security funds, health centres and hospitals. In 
compliance  with  EU  procurement  rules,  the  government  shall  conduct  the  necessary 
tendering  procedures  to  implement  a  comprehensive  and  uniform  health  care  information 
system (e-health system). 

further measures to ensure that at least 30 percent of the volume of medicines used by public 
hospitals  is  composed  of  generics  with  a  price  below  that  of  similar  branded  products  and 
off-patent  medicines,  in  particular  by  making  compulsory  that  all  public  hospitals  procure 
pharmaceutical products by active substance.  

decisions to provide for the institution and establishment of positions for the SPPA’s 
(Single Public Procurement Authority) personnel, as well as for the organization of 
human resources and services of the Authority in accordance with the provisions of 
the law on the SPPA; to appoint the members of the SPPA.  

Publication of monthly data on staff movements (entries, exits, transfers among entities) of 
the several government departments; 

7. Greece shall adopt the following measures by the end of December 2011: 

(cid:208) 2010/320/EU 
(cid:214) new 

(a) 

(b) 

(dc) 

(ed) 

the final adoption of the measures referred to in paragraph 6(a) (cid:214) budget for 2012  
; 

a  reinforcement  of  the  managerial  capacity  of  all  managing  authorities  and 
intermediate bodies of operational programmes under the framework of the national 
strategy  reference  framework  2007-2013  and  their  ISO  9001:2008  (quality 
management) certification; 

(cid:208) 2011/57/EU Art. 1 pt.16 
(cid:214) new 

a  hospital  case-based  costing  system  to  be  used  for  budgeting  purposes  from  2013 
on; 

acts  to  implement  the  operational  recommendations  of  the  first  phase  of  the 
functional review of public administration at central level and of the full  review of 

EN 

18 

   EN 

 
 
 
existing  social  programmes;  (cid:214) assessment  of  the  results  of  the  second  and  final 
phase of the independent functional review of central administration;  

(cid:208) 2011/57/EU Art. 1 pt.16 
(adapted) 

(fe)  ⌦ starting  of  operations  of ⌫  the  Single  Public  Procurement  Authority  starts  its 
operations with the necessary resources to fulfil its mandate, objectives, competences 
and powers as defined in the Action Plan.; 

(cid:216) new 

(f) 

(g) 

(h) 

review of fees for medical services outsourced to private providers with the aim of 
reducing related costs by at least 15 percent in 2011, and by an additional 15 percent 
in 2012.  

measures to simplify the tax system, broaden bases and reduce tax rates in a fiscally-neutral 
manner, in relation to the personal income tax, corporate income tax and VAT. 

further measures to ensure that at least 50 percent of the volume of medicines used 
by  public  hospitals  is  composed  of  generics  with  a  price  below  that  of  similar 
branded products and off-patent medicines, in particular by making compulsory that 
all public hospitals procure pharmaceutical products by active substance. 

(cid:208) 2011/257/EU Art. 1 pt. 11 
(adapted) 

8. Greece shall adopt the following measures by the end of March 2012: 

(a) 

a  reform  of  the  secondary/supplementary  pension  schemes,  by  merging  funds  and 
starting  the  calculation  of  benefits  on  the  basis  of  the  new  notional  defined 
contribution  system;  freezing  of  nominal  supplementary  pensions  and  reduction  of 
the replacement rates for accrued rights in funds with deficits, based on the actuarial 
study prepared by the National Actuarial Authority. In case the actuarial study is not 
ready, replacement rates are ⌦ shall be ⌫ reduced, starting from 1 January 2012, 
to avoid deficits.; 

(b) 

calculation of pharmacies' profit margins as a flat amount or flat fee combined with a 
small  profit  margin  with  the  aim  of  reducing  the  overall  profit  margin  to  no  more 
than 15 percent, including on the most expensive drugs. 

(cid:216) new 

(cid:208) 2010/320/EU 

Article 3 

Greece  shall  fully  cooperate  with  the  Commission  and  transmit  without  delay,  upon  a 
reasoned  request  from  the  latter,  any  data  or  document  required  in  order  to  monitor 
compliance with this Decision. 

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1.  Greece  shall  submit  to  the  Council  and  the  Commission  a  report  outlining  the  policy 
measures taken to comply with this Decision on a quarterly basis. 

Article 4 

2. The reports referred to in paragraph 1 should ⌦ shall ⌫ contain detailed information on: 

(cid:208) 2010/320/EU (adapted) 

(cid:208) 2010/320/EU 

concrete measures implemented by the date of the report in order to comply with this 
Decision, including their quantified budgetary impact; 

concrete measures planned to be implemented after the date of the report in order to 
comply with this Decision, their implementation calendar and an estimation of their 
budgetary impact; 

the monthly State budget execution; 

infra-annual  budgetary  implementation  by  social  security,  local  government  and 
extra budgetary funds; 

government debt issue and reimbursement; 

permanent and temporary public sector employment developments; 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

government expenditure pending payment, specifying those past due date; 

(cid:208) 2010/486/EU Art. 1 pt.15 

(h) 

the financial position of public undertakings and other public entities. 

(cid:208) 2010/320/EU 

3.  The  Commission  and  the  Council  shall  analyse  the  reports  with  a  view  to  assessing 
Greece’s compliance with this Decision. In the context of those assessments, the Commission 
may indicate the measures needed to respect the adjustment path set by this Decision for the 
correction of the excessive deficit. 

(cid:208) 2010/320/EU 

(cid:208)  

Article 5 

Decision 2010/320/EU is repealed. 

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References to the repealed Decision shall be construed as references to this Decision and shall 
be read in accordance with the correlation table in Annex III. 

(cid:208) 2010/320/EU 

Article 65 

This Decision shall take effect on the day of its notification. 

This Decision is addressed to the Hellenic Republic. 

Article 76 

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(cid:216) new 

ANNEX I 

Medium-term fiscal strategy measures 

(as mentioned in Article 2 (5) of this decision) _ 

The medium-term fiscal strategy (MTFS) through 2015 will include the following: 
Cuts in wage bill by at least EUR 770 million in 2011, and additional EUR 600 million in 2012, 
EUR  448  million  in  2013,  EUR  306  million  in  2014  and  EUR  71  million  in  2015,  through  the 
implementation of attrition beyond the rule of 1 recruitment for 5 exits (1 for 10 in 2011); an increase 
in weekly working hours for public sector employees from 37.5 to 40 hours and reduction in overtime 
payments;  reduction  in  the  number  of  remunerated  committees  and  councils;  reduction  in  other 
additional compensation, allowances and bonus schemes; reduction in contractors (50 percent in 2011 
and  additional  10  percent  in  2012  and  onwards);  temporary  freeze  of  automatic  progression;  the 
implementation  of  a  new  remuneration  grid;  the  introduction  of  part-time  public  sector  employment 
and  unpaid  leave;  a  reduction  in  the  number  of  admissions  to  military  and  policy  academies,  the 
transfer of excess staff to a labour reserve paid on average at 60 percent of the wage up to 12 months, 
and a cut in the productivity allowance by 50 percent. 
Cuts  in  the  state's  operation  expenditure  by  at  least  EUR  190  million  in  2011,  and  additional 
EUR 92 million in 2012, EUR 161 million in 2013, EUR 323 million in 2014 and EUR 370 million 
in  2015,  through  the  implementation  of  e-procurement  for  all  public  procurement;  rationalization  of 
energy expenses by public services; reduction in rental expenses following more efficient use of public 
property;  reduction  of  all  telecommunication  expenses,  abolition  of  free  distribution  of  newspapers; 
cuts  in  operational  expenditure  in  the  ordinary  budget,  across  the  board;  implementation  of 
benchmarks in public spending following a one-year full operation of MIS for the general government 
expenditure. 
Cuts  in  extra-budgetary  funds'  expenses  and  transfer  to  other  entities  by  at  least  EUR  540 
million  in  2011,  and  additional  EUR  150  million  in  2012,  EUR  200  million  in  2013,  EUR  200 
million in 2014 and EUR 150 million in 2015, through the assessment of the mandate, viability and 
expenses of all entities subsidized by the public sector and their mergers and closure; merger/closure 
and reduction in subsidies to educational institutions (schools, higher education institutions); reduction 
in  State  grants  to  entities  outside  general  government,  and  an  action  plan  on  closing,  merging  and 
downsizing entities. 
Savings in state-owned enterprises by at least EUR 414 million in 2012, and additional EUR 329 
million  in  2013,  EUR  297  million  in  2014  and  EUR  274  million  in  2015,  through  increase  in 
revenue  of  OSE,  OASA  and  other  enterprises,  the  implementation  of  restructuring  plans  and 
privatisation  in  Hellenic  Defence  Systems,  Hellenic  Aeronautical  Industry,  Hellenic  Horse  Racing 
Corporation;  sale  of  enterprises'  assets  associated  with  non-core  activities;  reduction  in  personnel 
expenses; reduction in operational expenses and mergers and closure of enterprises. 
Cuts  in  operational  defense-related  expenditure  by  at  least  EUR  133  million  in  2013  and 
additional  EUR  133  million  in  2014  and  EUR  134  million  in  2015  ,  on  top  of  the  reduction  in 
military equipment procurement (deliveries) of EUR 830 million from 2010 to 2015. 
Cuts  in  healthcare  and  pharmaceutical  expenditure  by  at  least  EUR  310  million  in  2011,  and 
additional EUR 697 million in 2012, EUR 349 million in 2013, EUR 303 million in 2014 and EUR 
463  million  in  2015,  through  the  implementation  of  a  new  'health  map'  and  associated  reduction  in 
hospitals  expenses;  a  re-evaluation  of  mandate  and  expenses  of  non-hospital  supervised  entities;  the 
implementation  of  central  procurement  system;  reduction  of  average  cost  per  case  through  case 
mixing; reduction in the services provided to the non-insured (gate-keeping function); introduction of 
charges  for  services  provided  to  foreign  citizens;  the  operation  of  the  National  Organization  for 
Primary Healthcare (EOPI); the scanning by IKA of hand-written prescriptions; the expansion of the 

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list of pharmaceuticals that do not require prescriptions; new prices of medicines; the establishment of 
insurance price by social security sector and the full implementation of e-prescription. 
Cuts in social benefits by at least EUR 1 188 million in 2011, and additional EUR 1 230 million 
in  2012,  EUR  1 025  million  in  2013,  EUR  1 010  million  in  2014  and  EUR  700  million  in  2015, 
through  an  adjustment  in  supplementary  pension  schemes  and  subsequent  freeze  through  2015;  a 
freeze  in  the  base  pensions;  the  reform  of  the  disability  pension  system;  a  census  of  pensioners  and 
cross-checking of personal data with full implementation of social security number and upper cap on 
pensions;  a  rationalization  of  criteria  for  pensioners  (EKAS);  a  rationalisation  of  benefits  and 
beneficiaries of OEE-OEK and OAED; cuts in the lump-sums paid on retirement; the cross-checking 
of personal data from introduction of ceilings for employers who can join OAED schemes; a reduction 
in  the  core  pension  of  OGA  and  in  the  lower  pension  thresholds  of  other  social  security  funds  and 
tightening  of  criteria  based  on  the  permanent  residence;  reduction  in  expenses  on  social  benefits 
though  cross-checking  of  data;  uniform  regulation  of  health  benefits  for  all  social  security  funds; 
uniform contracts with private hospitals and medical centres; the review of social benefits in cash and 
in kind leading to the abolition of the least effective; an increase in the special pensioner contribution 
(Law  3863/2010)  for  pensioners  whose  monthly  pension  exceeds  EUR  1 700;  an  increase  in  the 
special social contribution paid by pensioners below 60 years old with monthly pensions above EUR 
1 700; the introduction of special tiered contribution for supplementary pensions above EUR 300 per 
month and reduction in transfers to NAT (sailors' pension scheme) and the OTE pension scheme with 
concomitant reduction in pension expenditure or increase in contributions from beneficiaries. 
Cuts in state transfers to local governments by at least EUR 150 million in 2011, and additional 
EUR 355 million in 2012, EUR 345 million in 2013, EUR 350 million in 2014 and EUR 305 in 
2015. These reductions will be achieved primarily through cuts in expenses of local government equal 
to at least EUR 150 in 2011, and additional EUR 250 million in 2012, EUR 175 million in 2013, EUR 
170 million in 2014 and EUR 160 in 2015. Additionally, local governments’ own revenue will rise by 
at least EUR 105 million in 2012 and additional EUR 170 million in 2013, EUR 130 million in 2014 
and  EUR  145  million  in  2015,  through  an  increase  in  revenues  from  tolls,  fees,  rights  and  other 
revenue  streams  following  the  merging  of  local  administrations,  and  an  increase  in  local  tax 
compliance following the introduction of a local tax clearance certificate requirement. 
Cuts in expenditure by the public investment budget (domestically-financed public investment, 
and  investment-related  grants)  and  administrative  costs  by  EUR  950  million  in  2011, of  which 
EUR 350 million will be permanent, and additional EUR 154 million (administrative costs) in 2012. 
Increases  in  taxes  by  at  least  EUR  2017  million  in  2011,  and  additional  EUR  3 678  million  in 
2012, EUR 156 million in 2013 and EUR 685 million in 2014, through an increase in VAT rate on 
restaurants  and  bars  from  13  to  23  percent  from  September  2011  on;  increase  in  property  taxes; 
reduction  of  income  tax-free  threshold  to  EUR  8 000  and  establishment  of  a  progressive  solidarity 
contribution;  increases  in  presumptive  taxation  and  levies  on  self-employed;  reduction  of  tax 
exemptions/expenditures; changes in tax regime for tobacco products with an accelerated payment of 
excise  duty  and  in  tax  structure;  an  excise  on  soft  drinks;  excises  on  natural  gas  and  liquefied  gas; 
abolition of the tax advantage for heating oil (for enterprises from October 2011 on, and progressively 
for  households  from  October  2011  to  October  2013);  an  increase  in  the  vehicles  tax;  an  emergency 
contributions  on  vehicle,  motorbikes  and  pools;  increase  fines  of  unauthorised  buildings  and 
settlement of planning infringements; the taxation on private boats and yachts; a special levy on high-
value real estate; and special levy on smoking spaces. 
Improvements in tax compliance by at least EUR 878 million in 2013, and additional EUR 975 
million in 2014 and EUR 1147 million in 2015. 
Increases in social contributions by at least EUR 629 million in 2011, and additional EUR 259 
million  in  2012,  EUR  714  million  in  2013,  EUR  1 139  million  in  2014  and  EUR  504  in  2015, 
through  the  full  implementation  of  a  single  unified  payroll  and  insurance  contribution  payment 
method;  an  increase  in  contribution  rates  for  OGA  and  ETAA  beneficiaries;  the  establishment  of 
OAEE  beneficiary  solidarity  fund;  the  adjustment  of  unemployment  contribution  for  private  sector 
employees; the introduction of unemployment contribution for self-employed; and a contribution for 
unemployed  paid  the  employees  of  the  public  sector,  including  state-owned  enterprises,  local 
government and other public entities. 

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(cid:207) 

ANNEX II 

Repealed Decision with list of its successive amendments 

Council Decision of 10 May 2010 (2010/320/EU) 

(OJ L 145, 11.6.2010, p. 6) 

Council Decision of 7 September 2010 (2010/486/EU) 

(OJ L 241, 14.9.2010, p. 12) 

Council Decision of 20 December 2010 (2011/57/EU) 

(OJ L 026, 29.1.2011, p. 15) 

Council Decision of 7 March 2011 (2011/257/EU) 

(OJ L 110, 29.4.2011, p. 26) 

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ANNEX III 

CORRELATION TABLE 

Decision 2010/320/EU 

This Decision 

Article 1 

Article 2(1) 

Article 1 

Article 2(1) 

Article 2(2), introductory wording 

Article 2(2), introductory wording 

Article 2(2)(a)  

Article 2(2)(a) 

Article 2(2)(c) 

Article 2(2)(d) 

Article 2(2)(e) 

Article 2(2)(f)  

Article 2(2)(g) 

Article 2(2)(h) 

Article 2(2)(i) 

Article 2(2)(j)  

Article 2(2)(k)  

Article 2(2)(l)  

Article 2(2)(m)  

Article 2(2)(n)  

Article 2(2)(o)  

Article 2(2)(p)  

Article 2(2)(b) 

Article 2(2)(c) 

Article 2(2)(d) 

Article 2(2)(e) 

Article 2(2)(f) 

Article 2(2)(g) 

Article 2(2)(h) 

Article 2(2)(i)  

Article 2(2)(j) 

Article 2(2)(k) 

Article 2(2)(l) 

Article 2(2)(m) 

Article 2(2)(n) 

Article 2(2)(o) 

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Article 2(2)(q)  

Article 2(2)(p)  

Article 2 (3), introductory wording 

Article 2 (3), introductory wording 

Article 2(3)(a)  

Article 2(3)(b)  

Article 2(3)(c) 

Article 2(3)(a) 

Article 2(3)(b) 

Article 2(3)(n)  

Article 2(3)(f) 

Article 2(3)(c) 

Article 2(3)(i) 

Article 2(3)(j) 

Article 2(3)(d) 

Article 2(3)(e) 

Article 2(3)(k) replaced by Dec. 57/2011 

- 

Article 2(3)(l) 

Article 2(3)(m)  

Article 2(3)(n)  

Article 2(3)(o)  

Article 2(3)(q)  

Article 2(3)(r)  

Article 2(3)(s)  

Article 2(3)(t)  

Article 2(3)(f) 

Article 2(3)(g) 

Article 2(3)(h) 

Article 2(3)(i) 

Article 2(3)(j) 

Article 2(3)(k) 

Article 2(3)(l) 

Article 2(3)(m) 

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Article 2(3)(u)  

Article 2(3)(v)  

Article 2(3)(w)  

Article 2(3)(x)  

Article 2(3)(y)  

Article 2(3)(z)  

Article 2(3)(aa)  

Article 2(3)(bb)  

Article 2(3)(cc)  

Article 2(3)(dd)  

Article 2(3)(ee)  

Article 2(3)(ff)  

Article 2(3)(gg)  

Article 2(3)(hh)  

Article 2(3)(n) 

Article 2(3)(o) 

- 

Article 2(3)(p) 

Article 2(3)(q) 

Article 2(3)(r) 

Article 2(3)(s) 

Article 2(3)(t) 

Article 2(3)(u) 

Article 2(3)(v) 

Article 2(3)(w) 

Article 2(3)(x) 

Article 2(3)(y) 

Article 2(3)(z) 

Article 2(4), introductory wording 

Article 2(4), introductory wording 

Article 2(4)(b)  

Article 2(4)(c)  

Article 2(4)(d)  

Article 2(4)(e)  

Article 2(4)(f)  

Article 2(4)(g)  

Article 2(4)(a) 

Article 2(4)(b) 

- 

Article 2(4)(c) 

Article 2(4)(d) 

Article 2(4)(e) 

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Article 2(4)(h)  

Article 2(4)(i)  

Article 2(4)(j)  

Article 2(4)(k)  

Article 2(4)(l)  

Article 2(4)(f) 

Article 2(4)(g) 

Article 2(4)(h) 

Article 2(4)(i) 

- 

Article 2(5), introductory wording 

Article 2(5), introductory wording 

Article 2(5)(a)  

Article 2(5)(b)  

Article 2(5)(c)  

Article 2(5)(d)  

Article 2(5)(e)  

Article 2(5)(f)  

Article 2(5)(g)  

- 

Article 2(5)(h)  

Article 2(5)(i)  

- 

Article 2(5)(a) 

Article 2(5)(b), (c) and (d) - new 

Article 2(5)(e) 

Article 2(5)(f) 

- 

Article 2(5)(g) 

- 

Article 2(5)(h)  

Article 2(5)(i) 

Article 2(5)(j) 

art. 2(5)(k) – (r) 

Article 2(6), introductory wording 

Article 2(6), introductory wording 

Article 2(6)(a)  

Article 2(6)(b)  

Article 2(6)(c)  

Article 2(6)(d)  

Article 2(6)(a)  

Article 2(6)(b) 

Article 2(6)(c) 

Article 2(6)(d) 

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Article 2(6)(e)  

Article 2(6)(f)  

- 

Article 2(6)(e) 

Article 2(6)(f)  

art. 2(6)(g) – (n)  

Article 2(7), introductory wording 

Article 2(7), introductory wording 

Article 2(7)(a)  

Article 2(7)(b)  

Article 2(7)(d)  

Article 2(7)(e)  

Article 2(7)(f)  

- 

- 

Article 2(7)(a)  

Article 2(7)(b) 

Article 2(7)(c) 

Article 2(7) (d) 

Article 2(7) (e) 

Article 2(7)(f)  

Article 2(7)(g)  

Article 2(8), introductory wording 

Article 2(8), introductory wording 

Article 2(8) (a)  

- 

Article 3 

Article 4 

- 

Article 5 

Article 6 

- 

Article 2(8)(a) 

Article 2(8)(b)  

Article 3 

Article 4 

Article 5 

Article 6 

Article 7 

Annexes I, II and III 

_____________ 

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